A Spirit Airlines aircraft prepares for departure at Austin-Bergstrom International Airport on February 12, 2024 in Austin, Texas.
Brandon Bell | Getty Images
spirit airlines announced on Monday that it would postpone deliveries of new Airbus planes and furlough about 260 pilots to increase liquidity.
“These are, of course, not steps we want to take, but they are necessary to ensure a strong and profitable future for Spirit,” CEO Ted Christie said in a Monday statement to staff. mentioned in the memo.
Spirit said it has postponed all Airbus aircraft orders scheduled for delivery in the second quarter of 2025 and will instead deliver them in 2030 and 2031. Spirit said it will lease one plane each in the second and third quarters of next year, but there are no plans for deliveries between 2027 and 2029.
The low-cost airline said the postponement will increase liquidity by about $340 million over the next two years.
“The deferral of these aircraft provides us with an opportunity to reset our business and focus on our core airlines while adapting to a changing competitive environment,” Christie said in a news release.
Miramar, Fla.-based Spirit seeks ways to increase liquidity and convince investors it’s on track as it struggles with the grounding of many Airbus planes due to the coronavirus I’ve been doing it. pratt & whitney Engine recall.acquisition plan by jet blue airlines A federal judge ruled in January that the deal was anticompetitive, and it collapsed earlier this year.
The company announced on March 29 that it will receive monthly compensation payments for the grounded Pratt & Whitney engines until the end of 2024, which will increase liquidity by $150 million to $200 million. .
Spirit said on Monday that the trial furloughs would take effect in September. The airline has already introduced furloughs for flight attendants and there are “no plans” to furlough flight attendants, the Association of Flight Attendants told members on Monday. Spirit will close its crew base in Atlantic City, New Jersey, and staff will be redeployed.
Other airlines have also adjusted hiring and training in recent weeks, citing the aircraft shortage. This is a sharp change from the pilot shortage, which worsened when travel demand recovered after the worst of the pandemic. united airlines The pilots’ union announced late last month that the airline would put pilots on unpaid leave next month because their planes were delayed. boeing.
The Airline Pilots Association, a union for Spirit pilots, did not immediately comment on the furloughs.